The stock rating of Nintendo has been lowered and it’s all down to the fact that the Nintendo NX is coming our way.
The rating was lowered by Macquarie Capital Securities and this is a recommendation rating on whether you should invest or not in the stock of Nintendo. At the moment the rating has lowered to neutral.
The reason is said to be the Nintendo NX and the expectations of the firm about its reveal next week. There is some concern about the console coming in with a price tag of between $300 and $350. The worry is about whether or not it will be a threat to the chances of the console in the mass market. The company said that the price may be a big disappointment when it comes to high volume sales.
However it seems that they are not just worried about the Nintendo NX, exclusiveness initially to iOS device and not coming to China, they believe that this may mean it missing 60% of the potential market. Of course Nintendo has given assurance that it will come to Android shortly after.
But how well do you think the sales of the Nintendo NX will go when the device is launched?